Should your business be accepting card payments?

Should your business be accepting card payments?

Many small businesses do not feel the need to accept payment by credit or debit card, perhaps you think it doesn’t apply for your business or that consumers are more than happy paying with their cash. there are many payment methods that a business can use however did you know that in May 2015, it has been reported that more consumers are using ‘cashless’ payment methods other than using bank notes and coins, read more here: http://www.bbc.co.uk/news/business-32778196.

Although more consumers are using cashless methods that doesn’t mean these methods are suitable for your business, there are many things you need to take into account.

Mobile_new_image

Can your business afford to accept cashless payment methods?

As you are more than likely aware there are fees that come along with accepting card transactions. Some businesses may think they are too expensive and not an affordable option for their business. Additionally some companies that provide card machines may not be completely open and transparent with their pricing and all the associated costs. Sometimes business owners sign and accept a contract and then realise further down the line that their fees are higher than previously mentioned. One of the major contributing factors for this is normally due to pci dss non – compliance (payment card industry data security standards). pci compliance isn’t always explained to the business owner, pci dss is a legal obligation for anyone who has a merchant account, whether that is through a physical payment terminal or a virtual terminal where you accept payment online or over the telephone (moto). You are required to fill out a self-assessment form online and for the privilege of this your acquiring bank will charge you, either an annual fee or a monthly fee. this ranges from £4.99 per month or around £30/50.00 annually, however if you do not fill this form, you must still pay the pci dss fee but will incur an extra fee on top of that which is called a non-compliance fee, this can be very expensive and can be as much as £50.00 per month. All this can be avoided by filling out the self-assessment form.

You also have to pay a rental/lease amount for the card machine, and you are charged different rates for each type of card which is processed. New regulations concerning taking visa debit card payments were enforced from March 01 2015, read more: http://www.businesssensefm.co.uk/warning-uk-card-processing-charges-to-change-on-the-1st-march-2015/

As you can see it isn’t always cost effective for the every business, but there are numerous advantages for accepting cashless payments.

Contactless-Telegraph

Advantages of accepting card transactions

  • Customers are increasingly encouraged to be able to pay via card. especially with contactless cards
  • Payment at the time of the sale (no longer relying on the cheque in the post) – and the money is in the merchant’s bank account, typically, within four working days.
  • Simple way for consumers to pay if they do not have enough cash, they are able to pay via their card instead – meaning you won’t lose out on a sale.
  • Statistics indicate sales can increase by as much as 34% for merchants who have a credit card machine at their place of business.

It is very important to ensure that card transactions are suitable for your business however the consensus is that, they can massively increase your sales and will ensure that your customers are happy. People appreciate having the option to pay for their items via different payment methods, it’s convenient for you and for your customer.

If you do decide that you want to start accepting card transactions then give business sense a call, they can advise you in plain English with no jargon, and direct you down the right path as to how to start taking card payments.

Business Sense – 01656 720999

Or fill out their contact form and they will get back to you within 24 hours – http://www.businesssensefm.co.uk/contact/

Business Sense are experts in saving UK small businesses money on their business services costs – energy, telecoms and card processing for absolutely free.